For income tax purposes, we define a business as an activity where there is a reasonable expectation of profit and there is evidence to support that intention. For goods and services tax/harmonized sales tax (GST/HST) purposes, a business can also include an activity whether or not it is engaged in for profit, as well as any regular and continuous activity that involves leasing property.
Your choice of business structure will affect how you report your business income, the type of returns you complete, and many other aspects of your business.
To find out the impact each structure would have on your business, consult the following list:
- Sole proprietorship
Get the definition of sole proprietorship, information on the way it pays taxes, and information on its GST/HST remittance.
Get the definition of a partnership, information on the way it pays taxes, and information on its GST/HST remittance.
Get the definition of a corporation, information on the way it pays taxes, information on its GST remittance, and information on your responsibilities for the the debts of the corporation.
- Video series: Starting your business
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